Fraud Prevention, KYC and AML Compliance for P2P and Cryptoasset Exchange Operations Training Course

P2P Exchange Operations and the Landscape of Financial Integrity Risks

• Escrow-based order lifecycle management and asset settlement procedures.
• Risk exposure identification: off-platform fiat currency versus on-platform digital assets.
• Consequences of fraudulent loss, including chargebacks and banking disputes.

Exercise 1, Exposure Mapping: Teams will trace a single buy order and a single sell order from initiation to settlement, identifying every stage where off-platform payment disrupts the correlation between user identity and funds.

Regulatory Frameworks and Supervisory Standards

• FATF Recommendations, VASP obligations, and Travel Rule compliance.
• Regulatory oversight of cryptoassets and licensing requirements for exchange operators.
• Jurisdictional risk assessment, grey-list monitoring, and sanctions compliance exposure.

Fraud Typologies in P2P Trading

• Payment channel deviations and discrepancies in payer account details.
• Triangulation schemes, third-party payment actors, and reuse of payment verification documents.
• Manipulation of transaction amounts, including partial, altered, or visually similar figures.

Case Study, Five Recurring Patterns: Participants will classify anonymized dispute records against five established typologies and determine the specific control failure in each instance.

False Confirmations, Forged Receipts, and Account Compromise

• Orders marked as paid in the absence of verified fund transfer.
• Manipulated screenshots and falsified banking documentation.
• Phishing tactics within order communications and credential theft.
• Compromised accounts utilized for fraudulent transactions against other users.

Workshop, Phishing in Order Communications: Teams will compare legitimate support messages with fraudulent communications, then draft the process for account takedown and re-validation.

Know Your Customer (KYC) for Individuals: Levels 1 and 2

• Level 1 data capture and identity document verification.
• Level 2 re-validation, video selfie liveness checks, and screening against restricted lists.
• Reconciliation of verified identity with the payment instrument used.

Lab, Onboarding Under Pressure: Participants will conduct Level 1 and Level 2 reviews on sample files and document discrepancies that necessitate re-validation.

Know Your Customer (KYC) for Legal Entities and Beneficial Ownership

• Corporate documentation, authority of representation, and signatory verification.
• Mapping beneficial ownership chains and indicators of control.
• Risk factors associated with legal persons and requirements for periodic review.

Identity Fraud and Document Forensics

• Forged, borrowed, and synthetic identity schemes.
• Liveness verification bypasses, deepfake attempts, and injection attacks.
• Re-validation triggers following disputes or claims of account compromise.

Lab, Document Forensics: Participants will examine tampered documents and screenshots for inconsistencies in font, layout, metadata, and account numbers.

Anti-Money Laundering (AML) Screening, Sanctions, and PEP

• List matching protocols, tolerance thresholds, and management of false positives.
• Identification of Politically Exposed Persons (PEPs), adverse media analysis, and source of wealth verification.
• Enhanced due diligence standards and escalation thresholds.

Customer Risk Assessment and the Risk-Based Approach

• Assessment of customer, product, channel, geographic, and behavioral risk factors.
• Risk rating methodologies, review triggers, and treatment decisions.
• Calibration of due diligence efforts to the assessed risk level.

Transaction Monitoring and Blockchain Analytics

• Withdrawal approval criteria: account tenure, KYC status, and transaction history.
• Wallet attribution, high-risk counterparty identification, and fund tracing.
• Risk assessment of chargeback-prone payment gateways and methods.

Case Study, The Large Withdrawal: Participants will review a withdrawal request with mixed funding sources, determine whether to approve or escalate, and justify the decision against monitoring criteria.

Evidence Standards for Payment Verification

• Acceptable evidence types: bank statements and uninterrupted recordings.
• Authenticity verification of documents, captures, and metadata.
• Documentation of verification steps, including confirmed and unconfirmed items.

Lab, Evidence or Artifact: Teams will categorize submissions into acceptable evidence, insufficient evidence, and probable fabrication, specifying the additional information required.

Disputed Evidence and Interbank Delays

• Resolution protocols for cases where both parties submit valid evidence.
• Interbank processing wait times and preventive account holds.
• Documented decision criteria for orders that have passed the retention window.

Workshop, Conflicting Validations: Teams will resolve a dispute where both buyer and seller possess apparently genuine proof, and defend the final outcome.

Action and Sanctions Playbook

• Freezing of collateral, account restrictions, and suspension procedures.
• Deadlines for partial payment and return of funds to the originating account.
• Refunds to incorrect banks: fee allocation and resolution timeframes.
• Restriction of balances and retention of new deposits.

Exercise, Drafting Sanctions: Participants will draft the action, notification, and timeframe for three escalating cases and test them against playbook criteria.

Case Management, Documentation, and Escalation

• Maintenance of case files, internal notes, and evidence retention standards.
• Escalation matrix and review by department heads.
• Suspicious activity reporting (SAR) and record-keeping compliance.

Capstone: End-to-End Fraud Case

• Order review, evidence assessment, and identity re-validation.
• Escalation protocols, sanctions decisions, and counterparty resolution.
• Preparation of justification memoranda and peer review.

Capstone, Full Case Simulation: Each team will manage a complete simulated case from initial suspicious activity to final decision, presenting a written justification for peer review.

Diagnostic and Advisory Session (Additional Component)

• Review of current operational practices and protocol gaps.
• Guidance on evidence standards and resolution of disputed cases.
• Guidance on action protocols and sanctions criteria.